- Bitcoin stalls under $60,000 amid the formation of a double-top pattern.
- Ethereum wobbles above $1,900 while bulls focus on highs past $2,000.
- Ripple edge closer to a massive 23% breakout, targeting $0.71.
The cryptocurrency market is mainly green during the European hours on Thursday. Bitcoin made attempts to recover above $60,000, but the uptrend was cancelled due to a crucial technical barrier. Ethereum is up over 6% in 24 hours to exchange hands at $1,975 amid a renewed uptrend eyeing highs past $2,000.
Similarly, Ripple is holding above $0.55 after accruing 2.2% gains in the same period. Some altcoins are performing impressively, including Filecoin, Chainlink, Dogecoin, TRON, EOS, Solana and BitTorrent.
Bitcoin Could Bow to Key Technical Pattern
The flagship cryptocurrency is trading slightly above $58,600 after correction from price levels lightly above $59,000. The action toward $60,000 has become an uphill battle, especially with the formation of a double-top pattern.
Double-top patterns are extremely bearish technical and identify positions to sell the top. They develop after a colossal upswing in price, such as BTC's rise from marginally above $50,000 to highs close to $60,000. When an asset tests a resistance level twice separated by a trough, the pattern comes into the picture.
A correction is expected as soon as the price hits the second time's hurdle. Note that a sudden increase in trading volume validates patterns. If confirmed, correction tends to be drastic. Therefore, traders must stay alert to make the most out of the move.
Closing the day under $58,000 may validate the downtrend. Note that the 100 Simple Moving Average (SMA) on the four-hour chart will cushion Bitcoin from incurring massive losses. Other tentative support areas include the 100 SMA at $56,000, the 200 SMA currently at $54,245 and the buyer congestion $54,000. BTC's primary support is hosted between $50,000 and $51,000.
BTC/USD Four-Hour Chart
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Ethereum Bulls Relentless Battle for $2,000
Ethereum has come a long way from the dip to the support at $1,550 on March 25. Support at $1,800 was critical to the ongoing upswing, targeting $2,000. After wobbling above $1,900, Ether hit a monthly at $1,964, but a correction occurred toward $1,900.
At the time of writing, the pioneer smart contract token is doddering at $1,918 and holds in the upper band of an ascending parallel channel. ETH needs support at the middle boundary to secure the uptrend to $2,000. Realize that gains above the upper edge resistance may trigger massive buy orders as investors speculate the rise above $2,000.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator on the four-hour chart has validated the bullish outlook by rising higher within the positive territory. The MACD line (blue) is above the signal line, thus validating the anticipated rise beyond $2,000.
ETH/USD Four-Hour Chart
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Ripple Moves Closer to Ascending Triangle Breakout
The flagship cryptocurrency has been in consolidation following the recovery from the slump to $0.4 on March 25. However, a stubborn overhead pressure at $0.6 has continued to limit movement.
XRP is teetering at $0.55 at the time of writing and trading within the confines of an ascending triangle. This pattern is bullish and usually leads to the previous trend's resumption. A breakout is anticipated if the price rises above the x-axis. Usually, these triangles have exact upswing targets measured from the patterns' lowest to highest points.
For instance, XRP may lift 23% higher to $0.71 if the triangle resistance at $0.58 breaks. The cross-border token will have to make a real break beyond $0.6 to shrink the remaining gap to $0.71.
XRP/USD Four-Hour Chart
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It is worth mentioning that the bullish outlook will be sabotaged if the x-axis resistance stays intact. Moreover, failure to hold above $0.6 may also lead to an increase in overhead pressure. On the downside, support is expected at the 50 SMA on the four-hour chart, $0.45 and $0.35, respectively.